An integral part of the business formation process is careful consideration concerning limiting liability in the business structure in order to minimize personal risk should a business run into financial difficulties. Absent the proper protections, personal assets may be subject to the claims of business creditors should any legal judgments arise against the business.
In order to minimize personal and corporate risk, there are several asset protection strategies business owners should consider.
Leech Tishman’s Corporate Practice Group attorneys are highly-skilled in navigating business structures and oftentimes competing interests in order to formulate an effective asset protection strategy for their clients.
These strategies may include:
- Utilizing a limited liability company structure
- Limited liability company (LLC)
- Sole proprietorship
- Limited liability partnership (LLP)
- Family limited partnership
- Protecting assets through the formation of multiple entities
- Operating entity
- Holding entity
- Proper structuring of corporate entities
- Funding strategies for multiple entities including balancing equity and debt and utilizing leases, loans, and liens
- Creation of Series LLCs
Leech Tishman’s attorneys also work closely with the Insurance Coverage Group to help businesses make educated insurance decisions regarding liability and professional insurance to insulate their personal assets from protection in the event that they are subject to claims based on an exception to general limited liability. We also work in partnership with our Estates & Trusts Practice Group to advise businesses on how to effectively place personal assets in investment vehicles and trusts to increase protection from creditors or legal claims.